Best Aussie broad cap fund over the last decade
Money Management, using FE Analytics, averaged the returns of the Aussie broad-cap equity funds over the last decade and found that the DDH Selector Australian Equities fund was the top performer.
Sitting in top position with average returns over the decade of 20.84 per cent, the DDH Selector Australian Equities fund is no stranger to some good press.
It returned almost double the returns of its benchmark, the S&P/ASX All Ordinaries Accumulation, over the last 10 years, which returned an average across a ten, five, three and one-year period of 10.90 per cent.
Over the last ten, five, three and one-year periods, the fund has not dropped below the second percentile in terms of performance as compared to its peers in the Australian Core Strategies Equity – Australia sector.
The five FE Crown-rated fund had a particularly good year last year, as did most Australian broad caps, returning 35.27 per cent for the year to 31 August.
It invests primarily in consumer products (28.41 per cent), followed by telecommunications, media and technology (19.69 per cent), healthcare (14.46 per cent) and industrials (13.78 per cent).
According to FE Analytics, had an investor invested $10,000 in the fund on 30 June 2010, they would have received $6567 in income, presuming they did not reinvest their dividends and excluding fees.
And its Sharpe Ratio is something to consider as well, with a ratio of 0.48 as compared to the index’s 0.22. So, while the fund is a little riskier than its peer group, it has achieved more return while taking on no more risk, giving it a better risk-adjusted performance.
The chart below shows the performance of the fund as compared to its peers and the S&P/ASX All Ordinaries Accumulation index.
Of the remaining funds with a history of at least a decade, the Ausbil Australian Geared Equity fund, the Hyperion Australian Growth Companies fund, the Platypus Australian Equities Trust and the Ganes Value Growth fund are the subsequent top four funds.
Recommended for you
There is one specific risk that is a significantly higher concern for financial services directors compared to companies overall and is impacting their risk appetite, according to the AICD.
Global fund managers are shunning bonds, with the asset class seeing the largest drop in allocations in more than 20 years.
Australian Ethical has seen its funds under management reach $10 billion, driven by organic customer growth and superannuation contributions.
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.
